22 January 2015
If your business requires logistics, shipping and warehousing as part of its day-to-day operations, then the supply chain is a concept you will be familiar with. What you may be less familiar with is simplifying and managing that supply chain, which is where fourth party logistics comes in.
What is 4th Party Logistics?
In 1996 fourth party logistics was defined by Accenture as a trademark, defined as:
“A supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution.”
Today, 4th party logistics has come to mean the provision of a single integration point to manage multiple service providers throughout the client’s supply chain. A fourth party logistics provider will have overall responsibility for the logistics performance of their clients and can source, compare and recommend suitable suppliers for the client to work with in the fields of shipping, freight forwarding, warehousing, distribution and customs clearance.
How will your business benefit from working with a fourth party logistics provider?
A wide range of organisations, from manufacturers to retailers, global companies to SMEs may benefit from working with a 4PL provider as it will enable them to:
- Focus on their core business activities – as the 4PL provider will manage the supply chain
- React to unplanned changes and remain competitive – as the 4PL provider will act as a single integration point
- Increase control over costs and operational processes
- Ensure competitive advantage through leveraging economies of scale – as the 4th Party logistics provider will continue to develop innovative solutions
Working with a fourth party logistics provider who has proven experience in global supply chain practices can deliver a valuable contribution to the client’s business, which will ultimately be demonstrated through Return on Investment (ROI).
There are many reasons why 4th Party Logistics should be top of your list this year, not least because of the potential savings and streamlining opportunities that such a service can offer to your business, but if you would like to find out more please contact Navigator Solutions today on 01494 858341 to learn more about our capabilities in this area, or visit our new 4PL LinkedIn page to stay up to date with our latest news.